Founded in 2010, Mythic Models is a highly specialized prop and model-making studio based in Melbourne, Australia. The company employs 75 skilled artists, engineers, and craftsmen, creating intricate, bespoke models for film sets, television productions, and theme parks. Their expertise in fantasy and science fiction environments has made them a highly sought-after name in the industry.
In 2024, Mythic Models had its biggest project to date—”Kingdoms of the Void”, a high-budget fantasy blockbuster that reimagines medieval warfare with a sci-fi twist, where a peaceful kingdom is invaded by technologically advanced alien conquerors. The company was responsible for creating highly detailed castle miniatures, alien war machines, and battlefield dioramas, some of which were later scanned for CGI integration. The film’s stunning visuals and practical effects received widespread praise, boosting Mythic Models’ reputation globally.
Following this success, a major video game studio, Immersia Interactive, approached Mythic Models with an exciting joint venture opportunity—creating hyper-detailed collectibles and interactive display pieces for a “Kingdoms of the Void” video game adaptation. This deal could significantly expand the company’s revenue streams beyond film projects, allowing them to tap into gaming and merchandise markets. However, the company’s executives must carefully assess their financial position before committing to the deal.
To analyse their financial health and investment potential, Mythic Models has compiled their financial data for 2024, as shown below:
Mythic Models – Financial Summary (2024)
Note: Company tax in Australia is 30%
| Category | Amount ($’000) |
| Cash | 50 |
| Cost of Sales | 820 |
| Current Liabilities | 150 |
| Debtors | 95 |
| Expenses | 300 |
| Interest | 35 |
| Dividends | 40 |
| Sales Revenue | 1600 |
| Total Equity | 600 |
| Non-Current Liabilities | 400 |
Following the success of Kingdoms of the Void, Immersia Interactive, the gaming company interested in a joint venture with Mythic Models, has taken the next step in negotiations. They are seriously considering moving forward with a deal to develop hyper-detailed collectibles and interactive display pieces for the video game adaptation of Kingdoms of the Void.
However, before signing any agreements, Immersia Interactive has requested a full balance sheet for the last financial year. Their finance team wants to assess Mythic Models’ financial health, asset base, and liabilities to ensure the company has the capacity to support large-scale production and distribution.
As the finance team at Mythic Models, you have been asked to reconstruct the balance sheet using the financial data provided below.
Category | Amount ($000) |
Bank overdraft | 15 |
Share capital | 400 |
Cash | 50 |
Trade creditors | 40 |
Property | 470 |
Long-term borrowings | 140 |
Plant & equipment | 281.5 |
Retained profits | 271.5 |
Debtors | 95 |
Other short-term loans | 70 |
Accumulated depreciation | (80) |
Stock | 120 |
Extension Activity: Financial Fraud at Mythic Models
As Mythic Models prepared to finalize their joint venture (JV) with Immersia Interactive, a shocking financial scandal emerged.
The CFO, Richard “Richie” Belmont, was discovered falsifying financial records to make the company appear healthier than it actually was. His motivation? To push through the JV, inflate the company’s valuation, and sell his shares at a high price before retiring to a luxury beach house in Barbados.
Now, Immersia Interactive must reevaluate their decision and analyze the true financial state of Mythic Models before committing to the joint venture.
Mythic Models’ Revised Financial Data (2024)
Category | Amount ($’000) |
Stock (Inventory) | 500 |
Current Assets (Total) | 730 |
Current Liabilities | 400 |
Gross Profit | 240 |
Sales Revenue | 1550 |
Task for Students